SALLY SARA: Turkey has cautiously welcomed a call from jailed Kurdish rebel leader Abdullah Ocalan for his troops to put their weapons aside after 30 years of fighting for more Kurdish autonomy.

In a statement, the militant leader said it's time to move from armed resistance to an era of democratic political struggle.

But as our Europe correspondent Mary Gearin reports, it's not clear that peace is imminent.

MARY GEARIN: Crowds that had gathered for Kurdish New Year's celebrations in the city of Diyarbakir reacted with excitement as the statement from the rebel leader was read out by a Kurdish MP.

KURDISH MP READING ABDULLAH OCALAN STATEMENT (translated): I am declaring that a new period is starting. Politics, not weapons, come to the fore. I am saying again that we are now at a phase for our armed groups to withdraw from Turkish territory.

MARY GEARIN: Turkey's prime minister, Recep Tayyip Erdogan, has welcomed it as a positive development, but says what matters is that the ceasefire is implemented.

On the streets of Istanbul, some doubt the jailed rebel leader's ability to control his forces.

(Istanbul local speaking)

This man says, "I do not think Abdullah Ocalan has enough power in jail to convince people outside. This will last maybe for a little while, but I do not think the guns will be silenced."

The statement follows months of talks between the prime minister and the rebel leader, through intermediaries, to end the 30 year battle between Turkey and the PKK group of militants fighting for greater autonomy for Kurds.

Fadi Hakura, a Turkey analyst at the London-based think-tank Chatham House, says this is an important development.

FADI HAKURA: I think that yes that this ceasefire is significant given that it is part of negotiated process of peace, but also it is a fragile ceasefire, because the devil really is in the detail. So far the focus has been on process and not on substantive negotiations and hard bargaining.

MARY GEARIN: What are the areas where you feel there is going to be compromise?

FADI HAKURA: I think that the initiation of the peace drive by the Turkish government with Abdullah Ocalan has raised a very high expectation among Kurdish nationalists and they expect now that the Turkish prime minister will give some substantive concessions in the area of devolving power to local municipalities, in the area of redefining the meaning of Turkish citizenship, and at the same time allowing for Kurdish language schooling.

So if those expectations are not met then this process could easily unravel. So far, we have not seen any clear indications on the part of the Turkish prime minister, Recep Tayyip Erdogan, any willingness to offer substantive concessions to Kurdish nationalists and in general and to the PKK in particular.

(Diyarbakir resident talking)

MARY GEARIN: This resident of the mostly Kurdish town of Diyarbakir says "We are waiting for peace, for better days. We don't want clashes anymore."